3 Stocks With a LOT Riding on 2016 Elections

Jaded Americans may not believe that it makes much of a difference who gets elected president this year, but the breakup of the potential Pfizer (PFE)/Allergan (AGN) merger is proof that politics have a big impact on Wall Street. Come November, Exxon Mobil (XOM), Valeant(VRX) and Smith & Wesson (SWHC) have a vested interest in the big election.

Exxon Mobil (XOM)

exxon-mobil-xom-stock-185Maybe it’s cynical to think that a politician born in one oil territory (Calgary, Canada) and raised and representing another (the state of Texas) would show some favoritism for the oil industry. However, in Ted Cruz’s case, he’s got more of a connection to the oil industry than friendships and campaign donor relationships. According to Cruz’s financialdisclosure documents, the senator has between $365,000 and $850,000 of his personal investment portfolio in six oil & gas holdings. In fact, Cruz owned at least $100,000 of XOM stock alone as of the filing date. For XOM shareholders, it never hurts to have a fellow shareholder with a six-figure stake living in the White House.

Conversely, Democrats have long been champions of the transition away from fossil fuels and toward renewable energy. In fact, Hillary Clinton was one of the loudest voices calling for an investigation into XOM’s possible cover-up of global warming data last year. Perhaps it’s no coincidence that Clinton’s attacks came shortly after XOM ended its sponsorship of the Clinton Global Initiative.

Smith & Wesson (SWHC)

Another Clinton target in recent debates has been…

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